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I recently looked at a condo unit in an old building that has about 20 units total. While touring the unit, I met the building caretaker and begin to ask questions about the HOA. I learned that one particular owner is higher in the hierarchy than the caretaker, because they own 75% of the units in the building and is renting them out. Apparently, the HOA still has meetings monthly but this one owner is the only person who attends them. I also did some research and learned that this person owns their own property company. Furthermore, the building has a very small amount of money in their association reserves. The unit itself is gorgeous and this is in a great location. I think I am able to afford it regardless of the ratio of renters to owners. I don't mind lots of renters in the building and would prefer that to attending numerous HOA meetings and listening to people nitpick about the rules because they have nothing better to do with their lives.
Is this is situation that is workable or should I run the other way?
Sure, one board member one vote, but it is one unit, one vote for such other matters.
Interesting why (well, aside from money) this person owns 75% of the units and how they were acquired.
I would not want to live in such a manner where one person has so much influence. Could be a cool guy, could be a terror, forcing you in financial straights via BS association items.
Besides being a major red flag, I doubt you’d be able to get financed, at least conventionally. A condo is non-warrantable when a single owner owns more than 20% of the total units. Unless it was family or a friend I was close to I’d never even consider buying that condo, financing or not.
No. I do not have a problem with HOAs inherently, but one person with all of that power is a disaster waiting to happen. Even if this person is a saint (which you'd never really know until it was too late), what if this person passes away and the person's heirs are complete disasters? Too many wild variables on such a large scale to comfort me.
Besides being a major red flag, I doubt you’d be able to get financed, at least conventionally. A condo is non-warrantable when a single owner owns more than 20% of the total units. Unless it was family or a friend I was close to I’d never even consider buying that condo, financing or not.
As the above poster mentions this is a detriment to obtaining financing, although a quick call to your lender can verify.
There are lots of complexes that went this route when the market crashed the last time.................still great places to live but might be difficult to sell if you needed to if the ratio does not change.
Run the other way. This is a bear trap waiting to tear your foot off.
I agree. Remember it will be his way or the highway.
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